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MI
Moudrý Investor
@moudry_investor · Jul 22

✈️ Airbus $AIR.PA has had a string of great days. At the Farnborough Airshow, it secured a firm order for 100 aircraft from the A320neo family from SMBC Aviation Capital, one of the world's largest aircraft lessors. Specifically, it involves 65 A321neo and 35 A320neo units. The companies did not disclose the value of the contract, but in scope it is undoubtedly one of the most prominent orders of this year's airshow.

And management soon added another piece of good news. Airbus approved a share buyback of €5 billion, which it intends to execute over the next three years. It also expects adjusted operating profit to rise to €12 to €13 billion by 2029, up from €7.13 billion in 2025.

The shares responded to the announcement with a gain of over 7%.

How do you view Airbus? Do you think it still has plenty of room to run, or is much of the good news already priced in? What do you say about competition from Boeing $BA?

Do you have any aircraft manufacturer in your portfolio?

PG
Pavel Gregor @pavelgregor1 Jul 23

I'm staying away from aircraft manufacturers. The cyclical sector and I don't see eye to eye on timing.

MI
Moudrý Investor @moudry_investor Jul 23

It's not for everyone, but as Honza writes, $GE actually makes money from servicing aircraft engines, which are part of a well-predictable revenue stream.

JB
Jan Blecha @janblecha Jul 22

To be honest, if I wanted an aerospace company, I'd rather either go straight for an engine manufacturer ($GE) or directly for an airline, and there I like the European $RYAAY, but it's true that I haven't studied a pure aircraft manufacturer in depth.

MI
Moudrý Investor @moudry_investor Jul 22

Engine manufacturers are doing well, $GE and the British Rolls-Royce are very high-quality companies.

VS
Vojtěch Šplíchal @vojtechsplichal Jul 22

I don’t own a single company in my portfolio. But I do understand the worries about $BA, as a similar loan could greatly help its biggest competitor.

If I had to choose today which stock I would buy, I would rather look towards the European $AIR.PA. Which company would you choose?

MI
Moudrý Investor @moudry_investor Jul 22

I also like $AIR.PA more, but at the same time I like $BA's military and space division.

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